a. Record these general journal entries for Rainey Enterprises: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) (1) The loan to Small Co. (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. X Answer is not complete. No Date General Journal Debit Credit 1 Jun 01 Notes receivable 35,000 Cash 35,000 2 Dec 31 Interest receivable 1,624 X Interest revenue 1,624 3 Jun 01 No journal entry required 4 Jun 01 Cash 36,200 X Interest receivable 1,624 Interest revenue Notes receivable b. Show the effects of the three above transactions in a horizontal statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign. Round your final answers to the nearest whole dollar.) Balance Sheet Income Statement Assets Liab. + Equity Event Cash + Note Rec. + Int. Rec. + Ret. Ear. Revenue Expense Net Income Cash Flows 6/1/41 (35,000)| + 35,000| + + (35,000) IA 12/31/41 + + 1,624 = + 1,624 1,624 = 1,624 0 NA 6/1/42 + 6/1/42 + + + + + + + + a. Record these general journal entries for Rainey Enterprises: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) (1) The loan to Small Co. (2) The adjusting entry at December 31, Year 1. (3) The adjusting entry and collection of the note on June 1, Year 2. X Answer is not complete. No Date General Journal Debit Credit 1 Jun 01 Notes receivable 35,000 Cash 35,000 2 Dec 31 Interest receivable 1,624 X Interest revenue 1,624 3 Jun 01 No journal entry required 4 Jun 01 Cash 36,200 X Interest receivable 1,624 Interest revenue Notes receivable b. Show the effects of the three above transactions in a horizontal statements model. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign. Round your final answers to the nearest whole dollar.) Balance Sheet Income Statement Assets Liab. + Equity Event Cash + Note Rec. + Int. Rec. + Ret. Ear. Revenue Expense Net Income Cash Flows 6/1/41 (35,000)| + 35,000| + + (35,000) IA 12/31/41 + + 1,624 = + 1,624 1,624 = 1,624 0 NA 6/1/42 + 6/1/42 + + + + + + + +
